Tax Time! Ask me anything about Ride-share Taxes

Older Chauffeur

Well-Known Member
Sorry if this was already answered, new driver here. I'm trying to plan ahead for next year and track all my business expenses as I go. So far I'm tracking mileage, car washes, a new fast-charge car charger, a multi-device charging cable for pax, and seat covers, all things I wouldn't have gotten had I not been doing rideshare. My question is does my cell phone bill count? It's essential to the job, but I'd have it whether I was doing rideshare or not so I'm not sure.
The portion of the bill that applies to ride share activities. You use the same percentage as you do for mileage. For example, if you put a total of 80,000 miles on your car for the year, and 20,000 is for personal use, then 75% of your cellphone bill would be deductible.

Disclaimer: I’m not a tax professional.
 

Hornplayer

Active Member
The question is are those miles "necessary and ordinary" for your trade? From what you've stated I'm leaning towards yes. One thing about the trip log, I think you should also stop and start the trip log when you reach the pick up location.
I'm now using TripLog, after your recommendation. It's very useful and handy, thanx for the tip!

Been using it for a couple months now. And it seems to be getting slower. I press the button to finish the trip I'm on, and have to wait 5-10 seconds for it to realize I've stopped the trip and offer to save it (used to take 1-2 sec). I press the Save button, and another 5-10 seconds go by waiting for it to offer me the chance to start another trip. Press the Start Tip button, same things happen, etc.

Have you had this experience? Am I building up too many files in memory somewhere? Or.....??
 

UberTaxPro

Well-Known Member
Sponsor
  • Thread Starter Thread Starter
  • #143
I'm now using TripLog, after your recommendation. It's very useful and handy, thanx for the tip!

Been using it for a couple months now. And it seems to be getting slower. I press the button to finish the trip I'm on, and have to wait 5-10 seconds for it to realize I've stopped the trip and offer to save it (used to take 1-2 sec). I press the Save button, and another 5-10 seconds go by waiting for it to offer me the chance to start another trip. Press the Start Tip button, same things happen, etc.

Have you had this experience? Am I building up too many files in memory somewhere? Or.....??
Haven't had that problem. Try turning your phone on and off every once in while, that seems to help when my phone starts getting slow.
 

BigRedDriver

Well-Known Member
I'm now using TripLog, after your recommendation. It's very useful and handy, thanx for the tip!

Been using it for a couple months now. And it seems to be getting slower. I press the button to finish the trip I'm on, and have to wait 5-10 seconds for it to realize I've stopped the trip and offer to save it (used to take 1-2 sec). I press the Save button, and another 5-10 seconds go by waiting for it to offer me the chance to start another trip. Press the Start Tip button, same things happen, etc.

Have you had this experience? Am I building up too many files in memory somewhere? Or.....??
Mine does the same. Beginning of the month it works great. Very fast, by the end of the month, starts bogging down. Likely reason is the amount of transactions monthly? Only thing I can figure out. And waiting with a pax onboard just to click the buttons is getting a bit annoying.
 

islanddriver

Well-Known Member
I start trip log when I go online . Then when I drop off pax I stop,then start. I don't start and stop after each pax . I only stop then start after dropping off pax. Cause if I'm driving around waiting for a ride on still working.
 

BobMarley

Active Member
I start trip log when I go online . Then when I drop off pax I stop,then start. I don't start and stop after each pax . I only stop then start after dropping off pax. Cause if I'm driving around waiting for a ride on still working.
Assuming I get a ping from my house, my logging app goes on in the driveway. It stays on until I sign off both rideshare apps, usually no more than a mile from my house, or work. I use Stride Tax for mileage logging.
 

FLKeys

Well-Known Member
how do I start my 2019 taxes for the first 1/4....? sorry I am a noob.
You should have started the day you decided to start driving for rideshare. Tracking deductible expenses and keeping receipts. And the biggie, keeping an IRS compliant mileage log.

With those few items you can easily see if you are making a taxable profit and should be considering paying estimated quarterly taxes. You don't actually file taxes until the end of the year, however if certain conditions are met the IRS expects quarterly estimated tax payments.
 

..Derek..

Active Member
You should have started the day you decided to start driving for rideshare. Tracking deductible expenses and keeping receipts. And the biggie, keeping an IRS compliant mileage log.

With those few items you can easily see if you are making a taxable profit and should be considering paying estimated quarterly taxes. You don't actually file taxes until the end of the year, however if certain conditions are met the IRS expects quarterly estimated tax payments.
may 7th was my first day....what is a mileage log?(2nd 1/4)
 

FLKeys

Well-Known Member
may 7th was my first day....what is a mileage log?(2nd 1/4)
Read Publication 583. Of course different drivers have different opinions on what a proper mileage log is.


From the internet:

Keeping a mileage log
The IRS tends to be strict in its documentation requirements for business mileage deductions. For this reason, you'll need to keep a thorough, accurate mileage log each year you attempt to claim a deduction.
Your mileage log must include the starting mileage on your vehicle's odometer at the beginning of the year and its ending mileage at the conclusion of the year. Each time you use your vehicle for business purposes, you must record the following information:
  • The date of your trip
  • Your starting point
  • Your destination
  • The purpose of your trip
  • Your vehicle's starting mileage
  • Your vehicle's ending mileage
  • Tolls or other trip-related costs
You can keep a mileage log in a notebook and update it by hand, or use a spreadsheet to continuously track your mileage. You can also use a mileage-tracking app. The key is to update your records regularly to ensure that they're precise. Additionally, the IRS requires you to keep your mileage log for three years from the date on which you file the income tax return containing your deduction.
 

UberTaxPro

Well-Known Member
Sponsor
  • Thread Starter Thread Starter
  • #156
So basically, if you so 50 trips a day you needs details for all trips logged ?
You need beginning and ending mileage for the year and details for all "business miles". Most of your business miles will be trips but you will have "dead miles" between trips and other business miles like miles to an Uber hub or miles to a repair shop etc. To maximize your vehicle expense deduction all "business miles" should be logged.
 

FLKeys

Well-Known Member
So basically, if you so 50 trips a day you needs details for all trips logged ?
That is where the debate comes in some say yes some say no. I record every leg of my daily driving. For instance if I had only 1 trip today my mileage log would have 3 entries in it for today. One entry from time I turned on app until I arrived at first pick up. Next entry would be from pick-up to drop-off. Final entry would be from that drop-off point until I turned off the app. Every entry would have notes, like Drive to pick-up, Uber Pick-up, relocate looking for rides, etc. There would also be a description entry like McDonalds, Residence, Wait for ping, etc.

I make notes on a note book and transfer them into an Excel spreadsheet later. Here is a sample of my log with some made up entries in it.

327791
 

FLKeys

Well-Known Member
Just download trip log it has all auto expenses and it's easy to use .they have a free trial. Triplog.com
With the volume I drive it is not worth the expense. Plus when I rested a few I found them to be off by as much as 5% and to me it is not worth giving up 5% of my miles for a convince I have to pay for.

Maybe if I did a lot more trips I would change my mind. Once I was used to tracking on paper it really is not an issue. I worked out a system that works for me.
 
Top